CI Global Asset Management, one of the largest investment management companies in Canada, presented on February 24 a prospectus for the launch of the first exchange-traded investment fund (ETF) for the cryptocurrency Ethereum, ether ( ETH). The new ETF will use the symbol ETHX on the Toronto Stock Exchange.
«Cryptocurrencies are transforming the financial world and we are excited to launch the world’s first ETF that invests directly in ether, one of the most highly valued cryptocurrencies, ”stated Kurt MacAlpine CEO of CI Financial.
“With these funds, we are reducing the sticking points that investors have traditionally faced when buying and holding cryptocurrencies. The CI Galaxy Ethereum ETF is an important addition to that line as this emerging asset class gains increasing interest and validation, ”added MacAlpine.
This is another example of the wave of institutional demand at a global level for cryptocurrencies. Through these funds, companies can have exposure to these assets with regulated platforms.
CI GAM, a subsidiary of CI Financial Corp. is an independent company that offers global asset management services and a wide range of investment services. It manages an equity of approximately USD 231.8 billion according to the statement.
Interest in cryptocurrency investments grows
Galaxy Digital Holdings President and CEO Mike Novogratz commented that Ethereum’s native cryptocurrency is the top candidate for the Web 3.0 foundation and that with ether investors will have exposure to the decentralized apps boom.
CI GAM will participate as administrator of the ETF and Galaxy Digital as sub-advisor. Galaxy Digital manages digital assets and they have extensive experience in portfolio management, market capital, mining, operations, blockchain and cryptocurrencies.
The two companies partnered in 2020 to form a bitcoin fund that raised $ 72 million when it went public. With this, CI seeks to shape itself into leadership in the digital asset ecosystem in Canada.
CI GAM also announced on February 19 a preliminary prospectus for a bitcoin ETF under the symbol BTCX. It would be the second, as CryptoNews reported that on February 11, the Ontario Securities Commission approved the world’s first Bitcoin direct custody ETF under the symbol BTCC.